The Marina Del Rey Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

As we head into Summer, Marina Del Rey home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 215 homes for sale in Marina Del Rey and 17 sold. Translation, under current market conditions, in any given month, you have about a 1 in 13 chance of selling your home.

In other words, when pricing your home, the practice of adding a “Pad” or “Cushion” to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today’s market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What’s Happening:
On June 1, 2008, there were 215 active listings for sale in the Marina Del Rey Market (Area 12): 25 Houses; 19 Townhouses; and 171 Condominiums.

In the past year, there were 236 homes sold in Marina Del Rey (between 6.01.07 and 5.31.08): 37 Houses; 46 Townhouses; and 153 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 1.1 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 243 days, Townhouses will be on the market an average of 148 days, and Condominiums should be on the market an average of 402 days.

Market Recap for the Month of May, 2008
When one compares the May results with the yearly result, we find that there is an approximately 12.6 month inventory of homes for sale in Marina Del Rey.

Broken down by specific property type, we find that there is a 12.5 month inventory of Houses, a 3.2 month inventory of Townhouses, and a 19 month inventory of Condominiums on the market in Marina Del Rey. (Based on current absorption rates).

How should a Seller approach the market? The key in today’s market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the Marina Del Rey and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

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Marina Del Rey Home Sales by the Numbers
17 sold in May 2008
23 sold in May 2007

215 Current Active Listings
25 Houses
19 Townhouses
171 Condos

17 Sold in May 2008
2 Houses
6 Townhouses
9 Condos

39 Expired in May 2008
6 Houses
2 Townhouses
31 Condos

18 Contingent & Pending in May 2008
4 Houses
2 Townhouses
12 Condos

23 Sold in May 2007
1 Houses
8 Townhouses
14 Condos

22 Sold in May 2006
2 Houses
5 Townhouses
15 Condos

26 Sold in May 2005
3 Houses
6 Townhouses
17 Condos

26 Sold in May 2004
2 Houses
5 Townhouses
19 Condos

23 Sold in May 2003
4 Houses
10 Townhouses
9 Condos

28 Sold in May 2002
4 Houses
10 Townhouses
14 Condos

22 Sold in May 2001
3 Houses
7 Townhouses
12 Condos

24 Sold in May 2000
4 Houses
10 Townhouses
10 Condos

22 Expired in May 2007
4 Houses
1 Townhouses
17 Condos

6 Expired in May 2006
2 Houses
2 Townhouses
2 Condos

8 Expired in May 2005
2 Houses
2 Townhouses
4 Condos

11 Expired in May 2004
0 Houses
1 Townhouses
10 Condos

8 Expired in May 2003
2 Houses
1 Townhouses
5 Condos

9 Expired in May 2002
5 Houses
1 Townhouses
3 Condos

20 Expired in May 2001
2 Houses
3 Townhouses
15 Condos

8 Expired in May 2000
1 Houses
1 Townhouses
6 Condos

To search for bank owned properties on the market go to http://www.LAHomeSearch.com

To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, Santa Monica, and Malibu go to http://www.LAHomeSearch.com

For Los Angeles Real Estate go to http://www.LAHomeSearch.com

To search for “For Sale By Owner” properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com

Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com

About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com